WHEN SIMULATION DOESN’T WORK

The major weakness cited in relationship to simulated accounts is that they cannot reproduce
the emotions associated with trading real money. The fear and pain of loss, the
anxiety of anticipation, and the joy of winning are not produced by the simulated account.
The simulated account may be a clone of real trading, without a soul. Yet, this is
a narrow view and, in fact, misunderstands even the drawbacks of simulation. Not being
able to reproduce the emotions associated with the trading situation may be simulating
the best psychological state of them all—no emotions. Having practiced trades seriously,
without the emotional angst of each trade, the trader has in fact reproduced an advanced
state of trading.


By Abe Cofnas